'Extra' contributions to single premium PRSA?

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usrbin

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Sorry if this is a dumb question, but is a single premium PRSA strictly one-deposit-only? Is there no way at all of making further lodgements/deposits in future years?

If so, what is the recommended type of PRSA for making variable, once-yearly PRSA savings at tax time? Thanks!
 
I doubt that in the general case you cannot make further contributions. I have a "single contribution" PRSA to which I have made more than one contribution (albeit not regular contributions). Just ask your broker or the PRSA provider. Make sure that your PRSA is a 0%/1% or similar one and not a 5%/1% one unless you feel that the high charges are justified.
 
If you're thinking of contributing a variable amount once a year to a PRSA, you have two options: -

(1) Start a lump sum PRSA and add to it each year. There's no problem doing this.

(2) Start an annual contribution PRSA - you'll get a reminder from the PRSA provider each year that your annual contribution is due and there's no problem changing the contribution each year.

There's very little to choose between either of the above.

Liam D. Ferguson
www.ferga.com
 
Thanks to you both for your information. LD, can I just double-check, when you say

> (1) Start a lump sum PRSA and add to it each year. There's no problem doing this.

is 'lump sum PRSA' = 'single premium PRSA' ?

Cheers!
 
Are you sure that there is such a thing as a "single contribution PRSA" per se as opposed to a PRSA that is set up (at least initially) with a single lump sum contribution, with no ongoing regular contributions but which can usually or always still accept subsequent lump sum topup contributions (maybe subject to some minimum amount) such as annually or whenever you have the cash spare to contribute?
 
ClubMan said:
Are you sure that there is such a thing as a "single contribution PRSA" per se as opposed to a PRSA that is set up (at least initially) with a single lump sum contribution, with no ongoing regular contributions but which can usually or always still accept subsequent lump sum topup contributions (maybe subject to some minimum amount) such as annually or whenever you have the cash spare to contribute?
Click to expand...

Sorry - I don't understand the question. It's possible to set up a PRSA that accepts contributions at regular intervals e.g. monthly, annually etc. Or it's also possible to set up a PRSA with a once-off contribution and no expectation of any further contributions. But with the latter, it's simple to add additional monies on an ad-hoc basis whenever you want.

Hope this helps.
 
Sorry - what I meant was ... is there actually a class of PRSA, which we will call a true single lump sum contribution PRSA, that can only accept a single lump sum contribution and never another contribution (another lump sum or even regular contributions) thereafter? I would have thought not and that a PRSA provider is never going to turn money away?
 
I can't imagine why anyone would set up such a product and I'm not even sure it's allowed under the PRSA legislation.

If the policy was set up as a single premium policy, I presume this just means that there were no arrangements in place for regular future contributions at the time the policy was taken out.

Regards
Homer
 
Thanks - that's what I thought. I guess that the PRSA provider might put some limit on the size of a lump sum that they would accept or something?
 
I heard from someone too that there is no such thing as a lump-sum PRSA just a single contribution one.
 
ClubMan said:
Thanks - that's what I thought. I guess that the PRSA provider might put some limit on the size of a lump sum that they would accept or something?
Click to expand...

Not really - in the interest of prudence they will sometimes make enquiries if an individual appears to be making a contribution that far exceeds his limits for tax relief.

Some funds, particularly those with guarantees, limit the maximum an individual can invest but such funds are not available in Standard PRSAS.
 
But he told me xtra contributions can be made to the single contribution PRSa
 
Perhaps the confusion arises where the product provider cannot 'add' a single contribution to an existing one due to system restraints and a 'new' policy number has to be issued each time (?).
 
Bez said:
But he told me xtra contributions can be made to the single contribution PRSa
Click to expand...

Who told you? You can make additional contributions to a lump sum or regular contribution PRSA at will, save of certain system system limitations that F. Kruger mentions.
 
Yea that's what he said, a buddy of mine works with one of the banks.
 
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